P2.5-billion revenue lost from 3-month LPG, kerosene excise tax break —DOF

The Philippine government has incurred over P2 billion in forgone revenues from the suspension of excise tax collection on liquefied petroleum gas (LPG) and kerosene for a period of three months.

The estimated loss was pegged at P2.5 billion, according to data shared to reporters by the Department of Finance (DOF).

In a chance interview on the sidelines of a summit in Taguig City, Finance Secretary Frederick Go told reporters that the DOF “can again make a recommendation to reduce [or] suspend” should the average price of Dubai crude shoot up above the $80-per barrel threshold.

“That’s how the law is written,” Go said.

The Bureau of Internal Revenue (BIR) announced on Wednesday that the excise tax break on LPG and kerosene, which has been in place since April in a bid to ease households’ burden amid global oil price volatility due to the Middle East crisis, has been officially lifted.

The move was triggered by the drop in the average price of Dubai crude last month to below the $80 per barrel threshold under Executive Order No. 114-2026.

In particular, the Department of Energy (DO) has certified that the one-month average Dubai crude oil price, based on the Mean of Platts Singapore (MOPS), from June 1 to 30, 2026, was $79.45 per barrel.

Prior to the suspension, excise taxes under the Tax Reform for Acceleration and Inclusion (TRAIN) Law were set at P3.00 per kilogram for LPG and P5.00 per liter for kerosene.

Executive Order No. 114, issued on April 16, 2026, temporarily suspended the excise taxes on specific petroleum products for a period of three months from its effectivity.

The EO also provided that the excise tax rates shall automatically revert to the rates prescribed under the National Internal Revenue Code, without need of further issuance, upon the earlier of: one week after the one-month average Dubai crude oil price based on MOPS falls below $80.00 per barrel, as certified by the DOE; or the expiration of the three-month suspension period. — BM, GMA News